Proposed Korean Tax Law Revisions for 2023 – Finalized by the Government

The finalized Korean tax reform bill was approved by the Cabinet council on August 29, 2023.

In comparison to the Korean tax reform proposals for 2023 initially announced by the Ministry of Economy and Finance (MOEF), there have been some significant modifications worth noting as below.

• To enhance the rights of small corporate taxpayers who disagree with taxation, corporations with less than a certain amount of income can apply for the selection of a public agent when raising objections or requesting examinations against the ruling tax authorities. Currently, only individuals have the option to select a public agent for these cases.

• In the initial tax reform proposals for 2023, the deadline for submission of master file and local file would be shortened from current 12 months after the end of the fiscal year to 6 months after the end of the fiscal year. However, the finalized proposal eliminates this initially proposed tax reform aimed at a shortened submission deadline for master file and local file.

The approved Korean tax reform bill was submitted to the National Assembly on September 1, 2023.

Please refer to the summary of the major proposed tax law revisions that could be applicable to foreign-invested companies in our July 2023 edition of Newsletter.